Price Analysis of Top 10 Cryptocurrencies
• Inflation data has caused Bitcoin and select altcoins to fall below immediate support levels, signaling a few days of corrective action.
• Bitcoin is struggling to stay above $23,000 as the weekend approaches due to U.S. Federal Reserve rate hike expectations.
• Analysis suggests that a bottoming formation may have begun in Bitcoin and several altcoins, with next dip potentially forming a higher low before attempting a move higher.
Recent Market Performance
Strong inflation data has pulled Bitcoin and select altcoins below their immediate support levels, signaling a few days of corrective action. Daily cryptocurrency market performance shows that selling pressure increased after the personal consumption expenditures excluding food and energy rose 0.6% in January and 4.7% over the year, above market expectations of an increase of 0.5% and 4.4% respectively. This could trigger fears that the United States Federal Reserve may have to continue its rate hikes to bring inflation under control, which could strengthen the U.S Dollar Index further and put pressure on the cryptocurrency markets in the near term.
Bitcoin Price Analysis
The price action in Bitcoin suggests that a bottoming formation may have begun as buyers successfully held the 20-day exponential moving average (EMA) at $23,440 for two days but failed to sustain the rebound which attracted strong selling on Feb 24th . The negative divergence on the relative strength index (RSI) indicates weakening bullish momentum while BTC/USDT pair reached immediate support at $22,800 if broken can retest between 50-day simple moving average ($22,052) & $21,480 , alternatively if price fails to sustain below 20-day EMA it will indicate bulls are buying dips expecting move higher; A break & close above $25,250 may start next leg uptrend .
Ethereum Price Analysis
Ethereum slipped below 20-day EMA ($1,624) on Feb 22nd but long tail candlestick showed solid buying at lower levels indicating rejection of lower prices by bulls; Strong bounce from lows near $1,550 also suggested buyers are present around current levels & ETH/USD pair can again rise towards 20-day EMA if it breaks & sustains above descending channel resistance line at $1,680 along with positive crossover in MACD suggesting trend reversal; If bears sink price back inside channel then support near 50- day SMA ($1,450) will be tested followed by psychological level at $1 ,400 .
Analysis Summary
Analysis suggests that a bottoming formation may have begun in Bitcoin and several altcoins with next dip potentially forming a higher low before attempting a move higher; While Etherum bounced strongly from lows near %1550 showing presence of buyers around current levels ,it needs break through descending channel resistance line along with positive crossover in MACD for trend reversal ; Breakout from either direction will determine next trending move .